Crypto Tax Accountant in Toronto
The CRA is paying closer attention to cryptocurrency than ever before, and many Canadians are unsure whether their crypto is reported correctly. If you’ve traded, sold, staked, or earned crypto, those transactions are almost always taxable, and unreported gains can lead to penalties. NRK Accounting helps crypto investors across Toronto and North York report their crypto accurately, fix past filings, and stay compliant with the CRA, so you can stop worrying and get it handled properly.
- CRA Compliant
- Confidential
- Free Consultation
How Is Cryptocurrency Taxed in Canada?
In Canada, the CRA treats cryptocurrency as a commodity, not currency. That means most crypto activity triggers tax:
Selling or trading crypto
usually a capital gain (or loss). Even crypto-to-crypto trades are taxable events.
Spending crypto
using crypto to buy goods or services is a disposition and can trigger tax.
Earning crypto
staking rewards, mining, and crypto income may be taxed as income, not capital gains.
Frequent trading
active traders may have their gains taxed as business income rather than capital gains.
We determine the correct treatment for your situation, capital gains versus business income, and make sure every transaction is reported properly.
Worried About the CRA and Your Crypto?
The CRA has been actively pursuing unreported cryptocurrency, obtaining records from exchanges and matching them against tax returns. If you have crypto you haven’t reported, or aren’t sure whether you did it correctly, coming forward proactively is almost always better than waiting for the CRA to contact you. We help you:
- Bring unreported or under-reported crypto into compliance
- Correct past returns and file properly going forward
- Explore the Voluntary Disclosure Program where it may reduce penalties.
- Respond to CRA letters, reviews, or audits involving crypto
Claiming Crypto Losses & Reducing Your Tax
We Work With Your Crypto Records
Whether you use Koinly, CoinTracker, or exchange reports from Coinbase, Kraken, Crypto.com, Shakepay, or others, we handle the bookkeeping to reconcile your full crypto history and prepare accurate filings., even if your records are messy or span several years. References software/exchanges for credibility and captures exchange-name relevance, WITHOUT targeting software keywords (the trap). Also naturally seeds the exchange names for the FAQ cluster below.
Frequently Asked Questions
Does Coinbase report to the CRA?
Cryptocurrency exchanges operating in Canada can be required to share user information with the CRA, and the CRA has actively sought exchange records. Assume your crypto activity may be visible to the CRA, so reporting it correctly is essential. We help you report your Coinbase and other exchange activity properly.
Does Kraken report to the CRA?
The CRA has pursued information from crypto exchanges, and you should assume your trading activity could be reported or obtained. Rather than risk penalties, we help you report your Kraken transactions accurately and stay compliant.
Do I have to pay tax on crypto in Canada?
Yes. The CRA treats crypto as a commodity, so selling, trading, spending, or earning crypto is generally taxable, as either a capital gain or income. Even crypto-to-crypto trades count. We determine exactly what you owe and file it correctly.
What if I haven't reported my crypto in past years?
You’re not alone, and it’s fixable. We help you bring unreported crypto into compliance, correct past returns, and where appropriate use the CRA’s Voluntary Disclosure Program to reduce penalties, before the CRA contacts you.
Can I claim my crypto losses?
Yes. Crypto capital losses can offset capital gains and reduce your tax. We make sure your losses are properly documented and claimed so you don’t pay more than you owe.
Ready to strengthen your financial health?
Book a free consultation today to get expert dental accounting support in Toronto and North York.
Location
40 Wynford Drive, Suite 211 North York, Toronto
Phone
416-577-4301
info@nrkaccounting.com